Question 1
What is the process for converting government enterprises into individually owned firms known as?
Production allocation
Privatization
Entrepreneurship
Demand assessment
Profit maximization

Question 2
Which indicator refers to the total quantity of goods and services produced by an economic system during a given period?
The business cycle
Aggregate output
Gross domestic product
The consumer price index
Gross national product

Question 3
What is the term for the physical and intellectual contributions of people while engaged in the production of goods and services?
Human resources
Working capital
Physical resources
Planned resources
Market resources

Question 4
Which of the following is the MOST likely pricing approach for a monopoly?
Charge customers whatever you please.
Give customers a real bargain on price.
Charge a price that will not cause consumer demand to drop.
Undercut the prices of the competition.
Give customers a fair price that cannot be matched by competitors.

Question 5
What takes place when buyers purchase more of a product when the price drops, and less when the price increases?
Demand
Laws of supply
Laws of demand
Degree of competition
Free market economy

Question 6
In which type of economy do the individual producer and consumer control production through supply and demand?
Planned
Communist
Market
Socialist
Mixed

Question 7
Which of the following best explains the difference between a market economy and a planned economy?
In a planned economy, consumers have little choice in where they work or what they purchase or pay.
In a market economy, consumers must pay what the market demands.
Capitalism is the root of a planned economy.
Market economies are also known as mixed market economies.

Planned economies promote the use of privatization to increase market share.

Question 8
Which of the following measures indicates the prices of typical products purchased by American consumers living in urban areas?
GDP per capita
Standard of living
Consumer price index
Purchasing power parity
Economic indicators

Question 9
What is needed to gain a competitive advantage over competitors?
The ability to produce goods and services and sell those at a fixed profit
The ability to produce goods and services and sell those at a high profit
The ability to produce goods or services efficiently and at a reasonable profit
The ability to leverage the internet to sell in a global marketplace
The ability to have a unique good or service that cannot be easily duplicated by competitors

Question 10
Which environment is NOT an important dimension of a business organization’s external environment?
The political-legal environment
The sociocultural environment
The technological environment
The corporate cultural environment
The global business environment

Question 11
Which of the following is a way to tell how an organization is doing in meeting its social responsibility goals?
Governmental mandate
Executive summary
Social audit
Government initiative
Financial report

Question 12
When evaluating a decision based on the ethical norm of rights, a manager is MOST likely to consider which of the following questions?
Is the decision consistent with what we regard as fair?
Does the decision respect the individuals involved?
Is the decision consistent with people’s responsibilities to each other?
Does the decision optimize the benefits for those who are affected by it?
Does the decision comply with current legislation?

Question 13
How have companies such as Tyvek, General Motors, and DuPont worked to lessen the impact of waste on the environment?
By achieving LEEDS certification
By achieving zero-landfill status
By agreeing to recycle more than 50 percent of total waste
By eliminating the use of phosphates
By repurposing products and systems

Question 14
What is the most common and direct way to provide direct financial support when taking a proactive stance to social responsibility?
Set up a foundation
Reduce prices
Make a donation with each purchase
Use the Internet to solicit donations
Follow all laws set forth by the government

Question 15
What is the practice of injecting water and chemicals into underground rock in order to break the rock apart called?
Recycling
Toxic waste elimination
Fracking
Zero-landfill support
Repurposing

 Question 16
Which of the following allows for financial sanctions against businesses or business officials who engage in bribery?
Sarbanes-Oxley Act
SEC Act
U.S. Foreign Corrupt Practices Act
NRA
Political Action Committees

Question 17
What is likely the single MOST effective step that a company can take to set ethical standards?
Offer large cash awards for whistle-blowing.
Suggest that employees take ethics training.
Post ethical rules on bulletin boards.
State that the workplace values diversity.
Demonstrate support from top management.

Question 18
What do ethical norms that ensure an action is consistent with what’s fair entail?
Caring
Morals
Justice
Social responsibility
Economic agents

Question 19
Ethical issues are generally based on what?
Social responsibility
Individual ethics
Laws
Societal norms
Stakeholder returns

Question 20
What is the term given to the groups, individuals, and organizations that are directly affected by the practices of an organization?
Primary agents of interest
Social auditors
Competitors
Organizational stakeholders
Local communities

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